TF03      880020005P128Second Revised Sheet No. 88
TF04                First Revised Sheet No. 88  
TF05Edward C. McMurtrie, Vice President/General Manager
TF06110503                      120903
                       GENERAL TERMS AND CONDITIONS
                                (Continued)

     
5.  OVERRUN AND UNDERRUN, BALANCING AND PENALTY PAYMENTS (Continued)

    5.3   Balancing: (Continued)

              (1)  If an upstream pipeline indicates that the total
                   quantities delivered to Paiute from such pipeline
                   during the month have created a cumulative imbalance
                   such that cumulative delivered quantities are less
                   than ninety-five percent (95%) or greater than one
                   hundred five percent (105%) of the total of the cumu-
                   lative daily quantities scheduled for receipt by Paiute
                   at the applicable Receipt Point under Paiute's Rate
                   Schedules FT-1 and IT-1 at the end of that month, the
                   following shall apply:

                   a.  Any Shipper whose cumulative monthly imbalance falls
                       outside a tolerance range of plus or minus five per-
                       cent (5%) of the sum of Shipper's daily scheduled
                       quantities at the end of the month shall be notified
                       by Paiute. Shipper shall have forty-five (45) days
                       after notification by Paiute to reduce its cumulative
                       imbalance to a level that is within such acceptable
                       tolerance range. The makeup of imbalance gas in the
                       forty-five (45) day period shall include any further
                       monthly cumulative imbalance quantities incurred
                       after the notification to Shipper through the forty-
                       fifth (45th) day.

                   b.  In the event Shipper fails to reduce its cumulative
                       imbalance as prescribed pursuant to Section
                       5.3(d)(1)a hereof, Shipper shall be assessed a
                       penalty, but only in the event that Paiute is 
                       assessed penalties by the upstream pipeline for a
                       cumulative monthly imbalance. In such event, Paiute
                       shall recover from its Shippers an amount of penalty
                       revenues equal to the amount that Paiute has been
                       assessed by the upstream pipeline. Paiute shall
                       allocate such penalty amount among its Shippers on a
                       pro rata basis, based upon each Shipper's remaining
                       imbalance quantity that is outside of the tolerance
                       range specified in Section 5.3(d)(1)a hereof. 

              (2)  If the upstream pipelines indicate that the total
                   quantities delivered to Paiute from each pipeline at
                   the end of the month are within a tolerance range of
                   ninety-five percent (95%) to one hundred five percent
                   (105%) of the total of the daily quantities scheduled
                   for receipt by Paiute at the applicable Receipt Point
                   under Paiute's Rate Schedules FT-1 and IT-1 at the end
                   of that month, no penalties shall apply.